Skip to main content

View Diary: Either Leave Social Insurance Alone Or Pay Us Back Our $ 1 Trillion. (184 comments)

Comment Preferences

  •  It is also just wages that are taxed (36+ / 0-)

    not other kinds of ordinary income and not passive income like capital gains.

    It is also quite a suprise for folk who have bought the whole "50% of Americans pay no tax" lie when you tell them that payroll taxes are providing almost as much money as the federal income tax and that the one half of all govt revenue that comes in the form of State/local taxes are regressive for pretty much every single state - poor and middle higher % of their income as state and local taxes.

    We'd rather dream the American Dream than fight to live it or to give it to our kids. What a shame. What an awful, awful shame.

    by Into The Woods on Sat Apr 16, 2011 at 12:38:58 AM PDT

    [ Parent ]

    •  when Rand Paul repeated that one on the Daily Show (4+ / 0-)

      and Jon Stewart let it pass... argh.

      •  It's not readily available information (3+ / 0-)
        Recommended by:
        Eric Nelson, Kayakbiker, missississy

        at least not to the general public.

        Once you go looking for it, it's there, but the summary presentation is not something you see often.

        I've been meaning to get a pie chart together that summarizes it somehow.

        Another day, a longer list.

        We'd rather dream the American Dream than fight to live it or to give it to our kids. What a shame. What an awful, awful shame.

        by Into The Woods on Sat Apr 16, 2011 at 07:22:38 PM PDT

        [ Parent ]

      •  NYT David Leonhart 2010 Article (2+ / 0-)
        Recommended by:
        Kayakbiker, missississy
        Even if the discussion is restricted to federal taxes (for which the statistics are better), a vast majority of households end up paying federal taxes. Congressional Budget Office data suggests that, at most, about 10 percent of all households pay no net federal taxes. The number 10 is obviously a lot smaller than 47.

        The reason is that poor families generally pay more in payroll taxes than they receive through benefits like the Earned Income Tax Credit. It’s not just poor families for whom the payroll tax is a big deal, either. About three-quarters of all American households pay more in payroll taxes, which go toward Medicare and Social Security, than in income taxes.

        Focusing on the statistical middle class — the middle 20 percent of households, as ranked by income — underlines this point. Households in this group made $35,400 to $52,100 in 2006, the last year for which the Congressional Budget Office has released data. That would describe a household with one full-time worker earning about $17 to $25 an hour. Such hourly pay is typical for firefighters, preschool teachers, computer support specialists, farmers, members of the clergy, mail carriers, secretaries and truck drivers, according to the Bureau of Labor Statistics.

        But the picture starts to change when you look not just at income taxes but at all taxes. This average household would have paid 0.8 percent of its income in corporate taxes (through the stocks it owned), 0.9 percent in gas and other federal excise taxes, and 9.5 percent in payroll taxes. Add these up, and the family’s total federal tax rate was 14.2 percent.


        http://www.nytimes.com/...

        We'd rather dream the American Dream than fight to live it or to give it to our kids. What a shame. What an awful, awful shame.

        by Into The Woods on Sat Apr 16, 2011 at 08:42:32 PM PDT

        [ Parent ]

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site